Not always... really depends on the quality of management. Expensive people aren't always the best people to lay off anyway since they tend to have significantly higher layoff costs. (severance, etc).
The last company I worked for had some real financial issues (highly profitable company in-general but suffering from a crushing debt load killing all of those profits) we ended up going through 2 rounds of layoffs. The first, dictated by the board but implemented locally, was stellar. It's amazing how much better a company can perform when you can shed a bunch of people who were holding you back. You feel the bite a little bit because a person who was only operating at 20% was still doing 20% work that has to be made up somewhere but you also get rid of some costly bottlenecks leaving you with clearer holes to fill for partial re-hire.
Round 2 was terrible: This one was mandated by a gov't takeover so not only were the numbers MUCH higher but they were based on nationality / new background checks instead of manager input / performance. Honestly the capability of the company was severely neutered.
Honestly a layoff of the first variety every 5-10 years is good for culling the chaff. Unfortunately most larger companies seem to operate more like the second variety when they shed numbers to make the shareholders happy.